A lot of Base’s profitability has been pushed by the meme coin mania that gripped the crypto market in early 2024.
The Ethereum layer 2 community Base has not too long ago achieved a major milestone, with its whole worth locked (TVL) surpassing $8 billion. This achievement comes simply days after Base overtook Optimism’s OP Mainnet.
Based on the most recent data from L2Beat, Base’s TVL stands at $8.08 billion. This consists of $5.92 billion in natively minted property and $2.14 billion in canonically bridged worth, which suggests property locked on Ethereum to be represented on Base.
Base, incubated by Coinbase, is constructed on the open-source OP Stack, which permits builders to deploy dependable, safe functions with low transaction charges. It first reached the $1 billion mark in TVL on February 27, round seven months after its launch in August 2023. The community has since skilled a exceptional progress trajectory, growing eight-fold during the last 104 days.
Amid its rising reputation, Base surpassed OP Mainnet final week and have become the biggest chain inside the Superchain ecosystem. It’s now the second-largest Ethereum scaler when it comes to TVL, trailing solely Arbitrum One, which holds $18.27 billion in TVL.
Notably, Base additionally leads all Ethereum layer 2 networks in transactions per second (TPS) over the previous month, averaging 30.36 TPS, outpacing Arbitrum One’s 23.52 TPS. During the last 30 days, it has processed a complete of 64.86 million transactions, highlighting its rising adoption.
Monetary Efficiency and Challenges
Base has seen vital on-chain income over the previous three months. In March, it reached a report revenue of $16.9 million. Regardless of a 58.6% drop to $6.98 million in Might, Base nonetheless outperformed different Ethereum layer 2 networks, together with OP Mainnet, which recorded $1.57 million in income throughout the identical interval.
A lot of Base’s profitability has been pushed by the meme coin mania that gripped the crypto market in early 2024. Nonetheless, this reputation has additionally attracted scammers. In March, phishing scammers stole $3.35 million from the community, according to blockchain anti-scam platform Rip-off Sniffer. This represents a 1,880% improve from January when solely $169,000 was misplaced to such scams.
Regardless of these challenges, the longer term seems promising for Ethereum layer 2 scaling networks. Analysts at asset supervisor VanEck predict that these networks may collectively obtain a $1 trillion market cap by 2030. Their analysis considers 5 key areas: transaction pricing, developer expertise, person expertise, belief assumptions, and ecosystem measurement. The analysts write:
“When customers work together with L2s, acquainted instruments and interfaces are paramount. The adoption of acquainted wallets and blockchain explorers from Ethereum to L2s enormously enhances person consolation.”
In the meantime, the broader cryptocurrency market seems to be in a consolidation section, with Bitcoin buying and selling round $69,500.
